Money transfer

Hi Ninah321,

Gifts of money from children to parents have no Income Tax implications, but any interest or dividends generated may be taxable.                        

Tax on savings and investments: detailed information

Thank you.

Hi Iprsc Pang,  

As long as the money transferred was not earned in a tax year you were resident in the UK, then the money will be classed as capital and is not taxable. If the money was earned in a tax year you were resident in the UK, then this would be classed as income and may be taxable.

Thank you.

If I transfer £1,000 from one bank account to another, and then sent it on to a friend in a foreign country, am I likely to be breaking a law in the UK?

Hello, I'm currently based in Switzerland, and would like to help a UK-domiciled friend pay off her debt of £10,000. If I seek to pay her via a bank transfer, noting in the transfer that it is a gift, would she be liable to pay any tax on that? Alternately, would there be tax implications if i seek to tranfer funds as an interest-free loan? Thanks so much for your guidance, much appreciated. 

Name removed admin 

Hi, My questions is quite lengthy so I do apologise in advance. All information I provide below is of an example. I have two jobs: Job 1: Sainsbury’s 40 hours a week £26,000 salary before tax Job 2: 20 hours a week - will Work for my cousin who will pay me £1850 via bank transfer. I will be bouncing back the £1850 he sends me and send it to my mums account she is disabled and does not work, my plan is to send her up to £12,750 a year (personal tax free allowance) so she can use it for her personal use. Will I have to pay tax on the £1850 before I transfer this money to her? So just to reiterate, my plan is that for my second job, I give my mum £12.750 a year and I keep the remaining £11,300 and declare that on a self return? Would that be okay? Or should I declare the entire £24,050 (£1850 x 13) Please let me know Thanks

Hi Frederick Page,

There are no Income Tax implications on the giving or receipt of cash gifts, but you may wish to speak to Inheritance Tax regarding any Inheritance Tax implications. 

Inheritance Tax: general enquiries

You may also want to review the guidance here:

How Inheritance Tax works: thresholds, rules and allowances

Rules on giving gifts

You can see guidance below regarding limits to the amount of cash brought into or taken out of the UK.

Take cash in and out of the UK

Thank you.

Hi mer,

There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends. These would then potentially be subject to tax. Further guidance can be see here:

Tax on savings interest

Tax on dividends

Whilst there are no Income Tax implications on the giving or receipt of cash gifts, you may wish to speak to Inheritance Tax regarding any InheritanceTtax implications

Inheritance Tax: general enquiries

You can also review the guidance here:

How Inheritance Tax works: thresholds, rules and allowances

Rules on giving gifts

Thank you.

Hi Tfue Turner,

As you are using all your allowances of 12570 at your primary job then your secondary job will be taxed at basic rate (BR). The full £24050 is liable to tax and should be declared on your Self Assessment return.    

Thank you.

Hello, I am French, and live and work in the UK. I recently transferred my saving from a French bank account (>100K GBP) to buy a property in the UK. Do I need to pay UK tax on this money? Thanks in advance for your answer

Hi Julien,

No you dont need to pay tax on the transfer of the capital.
You will need to declare any interest or dividends that this has then generated.

Thank you.

I am a Spanish citizen and have been a UK resident since 2011 with settlement status. I work and pay taxes in the UK. I'm in the process of purchasing a property in Spain and intend to transfer £50,000 to a Spanish bank account for the deposit. Are there any tax implications I need to be aware of, or can I transfer the full amount without notifying HMRC?

Hi Fer DP
There are no tax implications on the transfer of the capital but if the property is then rented out, you will need to notify HMRC.
You may need to contact the Spanish tax authorities to ascertain if there are any tax implications there.

Hello! If I'm registered as self employed in the UK, can I put £4k cash on my bank account and than transfer money to a friend without paying tax? Or any sum of money would count as income? Thank you!

Hi VeraK,
As long as this is your own funds there is no tax implication.
Thank you. 
 

Hello, I will be moving to the UK from North Macedonia in February. How can I transfer my savings to the UK and would I need to pay any taxes or declare them anywhere? Thank you.

Hi Kristina Cvetanovska,
So long as the foreign savings you send to the UK, arise from income, from a tax year in which you are not resident in the UK, your savings will be treated as clean capital and will not be taxable.
Any foreign savings derived from income arising in a tax year you are resident in the UK, will be taxable as income.
Thank you. 

 

Hi HMRC team, If I transfer money overseas as a gift to my parents to pay off their mortgage, is there any tax implication such as inheritance tax, capital gain tax, etc? Thanks! Joseph

Hello I am an Indian citizen, living and working in the UK for the past 5 years. I have 2 questions, 1. If  I transfer money to my India account for investment purposes, can I transfer it back to my UK account (after that investment has appreciated)? Or do i need to pay tax on this amount or declare it in foreign income on my self-assessment? 2. Can my spouse transfer money to my bank account without any limit (for living expenses, rent, etc)? Or is there a limit beyond which tax must be paid? Regards 

name removed admin .

Hi bearance

No.  There are no tax implications on the giving or receipt of cash gifts, but you may wish to speak to inheritance tax regarding any inheritance tax implications (How Inheritance Tax works: thresholds, rules and allowances)

Thank you

Hi agarwal_ravj,
Please refer to guidance here:
https://www.gov.uk/government/publications/remittance-basis-hs264-self-assessment-helpsheet
Thank you.